Long-Term Care Insurance

Question 1

Long-Term Care

Answer 1

Non-hospital, non-physician care that an elderly or disabled person needs for an extended period of time

Question 2

LTC is often for…

Answer 2

90 days or more

Question 3

LTC focuses on…

Answer 3

Custodial care, not skilled care

Question 4

LTC policies will pay if person can’t perform…

Answer 4

2 activities of daily living

Question 5

Activities of Daily Living

Answer 5

Bathing, dressing, eating, transferring, toileting, continence

Question 6

Cognitive Impairment

Answer 6

Can trigger LTC benefits regardless of activities of daily living

Question 7

Cognitive impairment must be diagnosed by…

Answer 7

Licensed physician

Question 8

Respite Services

Answer 8

Relieve primary caregivers who monitor an LTC person at home

Question 9

Adult Day Care

Answer 9

Provides care to LTC persons in a temporary group setting

Question 10

Most modern LTC policies must pay for…

Answer 10

At least some respite/adult day care

Question 11

LTC: Elimination Period

Answer 11

Period of time during which a person must receive LTC (and pay OOP) before policy benefits will start paying

Question 12

LTC deductible is what type?

Answer 12

Time based. Often 30, 60, 90 days or more

Question 13

LTC: Benefit Period

Answer 13

Amount of time the insurer will pay for LTC

Question 14

LTC: Benefit period begins after…

Answer 14

Elimination Period

Question 15

LTC: Benefit period might be extended if…

Answer 15

Insured hasn’t used up daily/monthly benefit limits

Question 16

Underwriting

Answer 16

Must be reasonably healthy at time of application

Question 17

Issue Age

Answer 17

Age at time of purchase

Question 18

Attained Age

Answer 18

Premiums go up every year based on age

Question 19

LTC pricing will usually be based on…

Answer 19

Issue Age

Question 20

Issue-age policies can go up in price it…

Answer 20

It’s done to everyone in same rate class, not due to age or health

Question 21

LTC Exclusions

Answer 21

War injuries; self-inflicted injuries; alcoholism or drug abuse; mental illness; care covered by other insurance or government; care needed after illegal acts; aviation accidents; pre-existing health conditions

Question 22

What mental illnesses are covered by LTC?

Answer 22

Alzheimer’s and dementia

Question 23

LTC doesn’t cover aviation accidents unless

Answer 23

Person is a passenger

Question 24

LTC Inflation Protection

Answer 24

Optional feature that increases benefits based on inflation or other factors

Question 25

Future Purchase Option

Answer 25

Lets policyholder buy more LTC insurance at a later date regardless of health

Question 26

Extra coverage must be based on person's...

Answer 26

Attained age and will cost more

Question 27

Future purchase option must be exercised by a certain date and not when...

Answer 27

The person already needs LTC

Question 28

Non-Forfeiture Options

Answer 28

Provide benefits to policyholders who cancel their smaller benefit limit

Question 29

Non-forfeiture options are often...

Answer 29

Paid-up insurance for a shorter period of time or with a smaller benefit limit

Question 30

LTC Qualified Plans

Answer 30

Limit benefit triggers to inability to perform 2 ADL's and/or cognitive impairment

Question 31

In general, qualified LTC plans provide...

Answer 31

Tax-free benefits

Question 32

In general, a portion of qualified LTC premiums are...

Answer 32

Tax-deductible

Question 33

Non-qualified LTC plans might have...

Answer 33

Negative tax consequences

Question 34

LTC Partnership Plans

Answer 34

Special LTC policies that let someone qualify for MCD without having to spend down their assets

Question 35

LTC partnership plan specifics differ by...

Answer 35

State